McCain bill would repeal Jones Act

McCain bill would repeal Jones Act

McCain

   Sen. John McCain, R-Ariz. said he has introduced a bill that would repeal the Jones Act, calling it a law that “hinders free trade and favors labor unions over consumers.”
   A keystone of U.S. maritime policy, the Jones Act requires goods shipped between domestic ports to be carried by vessels built in the United States, and owned and crewed by Americans.
   “This restriction only serves to raise shipping costs, thereby making U.S. farmers less competitive and increasing costs for American consumers,” McCain claimed.

Wytkind

   Edward Wytkind, president of the Transportation Trades Department, AFL-CIO said McCain’s so-called “Open America's Waters Act' would “mean the elimination of hundreds of thousands of good jobs in maritime, ship building and other vital industries. The McCain bill would threaten national security by depleting the pool of American vessels and skilled mariners who can be deployed during times of war and military conflict.    Moreover, only U.S.-flag vessels crewed by U.S. citizen mariners comply with the U.S. government imposed homeland security rules designed to protect the nation from maritime related terrorist threats.
   'This legislation would open our waterways to foreign entities that don't employ U.S. workers, don't pay taxes to our treasury and do not operate under our safety and security regime. And in addition to threatening at least a half-million jobs, the McCain bill would siphon up to $100 billion in total economic output from our already reeling national economy,” he added.
   'Americans have grown weary of proposals in Washington that place political agendas over national interests. The McCain bill should be rejected,” Wytkind said.
   Tim Brown, president of the Masters, Mates, and Pilots union, said McCain was trying to use the crisis in the Gulf of Mexico resulting from the BP Deepwater Horizon rig explosion to “amplify the two or three votes” he might otherwise get for the proposal. In ordinary circumstances, it would “not have a prayer of being passed. I’m not sure it has a prayer of being passed now.”
   Some interests have called for a repeal of the Jones Act to allow additional foreign-flag vessels to be used in the BP oil spill cleanup. But Brown said, 'there are laid-up U.S.-flag tankers that could be pressed into service if needed.'

Arntzen

   Morten Arntzen, chief executive officer of Overseas Shipholding Group, one of the largest U.S.-flag tanker operators, said earlier this week at the Marine Money conference that he had no objection to foreign-flag tonnage being used to assist in the cleanup of the oil spill.
   McCain said the Obama administration “has the ability to grant a waiver of the Jones Act to any vessel — just as the previous administration did during Hurricane Katrina — to allow the international community to assist in recovery efforts. Unfortunately, this administration has not done so. Therefore, some senators have put forward legislation to waive the Jones Act during emergency situations, and I am proud to co-sponsor this legislation.”
   But he said his bill would go much further.
   “The best course of action is to permanently repeal the Jones Act in order to boost the economy, saving consumers hundreds of millions of dollars. I hope my colleagues will join me in this effort to repeal this unnecessary, antiquated legislation in order to spur job creation and promote free trade.'
   McCain pointed to 1999 U.S. International Trade Commission economic study that he said “suggested that a repeal of the Jones Act would lower shipping costs by approximately 22 percent. Also, a 2002 economic study from the same commission found that repealing the Jones Act would have an annual positive welfare effect of $656 million on the overall U.S. economy.
   'Since these studies are the most recent statistics available, imagine the impact a repeal of the Jones Act would have today: far more than a $656 million annual positive welfare impact — maybe closer to $1 billion. These statistics demonstrate that a repeal of the Jones Act could prove to be a true stimulus to our economy in the midst of such difficult economic times,” McCain said.
   “The Jones Act also adds a real, direct cost to consumers — particularly consumers in Hawaii and Alaska. A 1988 GAO report found that the Jones Act was costing Alaskan families between $1,921 and $4,821 annually for increased prices paid on goods shipped from the mainland. In 1997, a Hawaii government official asserted that 'Hawaii residents pay an additional $1 billion per year in higher prices because of the Jones Act. This amounts to approximately $3,000 for every household in Hawaii,' ' he said.
   The Lake Carriers Association also opposes the legislation. “We belief it is without foundation.”
   The group represents U.S.-flag operators on the Great Lakes, which it said comprises the world’s largest fleet of self-unloading bulk carriers. It said its customers, including steel mills and electric generating stations, “are well served by the Jones Act.”
   A spokesman said the group did not believe the legislation had any chance of being passed, saying the Jones Act is supported by both the Obama administration and Congress. ' Chris Dupin